The Government has set up a committee, the Liquidity Management Committee (LMC), to control excess money in the market to guard against exchange rate volatility and inflation.
LMC comprises officials from the Reserve Bank of Zimbabwe (RBZ) and the Ministry of Finance and Economic Development.
Finance and Economic Development Deputy Minister Clemence Chiduwa said that LMC will ensure that when ministries, departments and agencies request funds, Treasury will release the funds on condition that the cash is available.
Chiduwa said this while addressing the Confederation of Zimbabwe Industries (CZI) 2023 Annual Economic and Business Outlook Symposium in Harare on Wednesday. <a href="https://www.sundaymail.co.zw/govt-sets-up-liquidity-management-committee">The Sunday Mail</a> quoted him as saying:
<blockquote>
I have heard quite a number of people saying the Ministry (of Finance and Economic Development) accepts to make payments but then later on they don’t honour.
It has happened once but going forward we now have a Liquidity Management Committee. 
The Liquidity Management Committee ensures that whatever is requested by the ministries, we only honour on condition that the cash is available.
This again is going to assist us in terms of managing the liquidity that is given out.
</blockquote>
Chiduwa said the Government has resolved to run a cash flow budget to ensure expenditure did not go beyond collected revenues.
He said Treasury had collected $2.04 trillion in revenue as of September 30, 2022, with expenditure amounting to $2.2 trillion. Said Chiduwa:
<blockquote>
We have come up with a policy to ensure that whenever we make huge payments at the same time, we are also going to unleash our open-market operation.
This will make sure that if we are going to release $40 billion next week, our open market operation will also be in the market at the same time to make sure that we mop up any excess liquidity.
We have seen that if you look between November and December 2022 to January 5 this year, there was quite a lot of cash in the market because we were paying our wheat farmers, contractors and all that. 
But from January 5 up to now, there are no Zim dollars in the market and we have made sure that at any point in time we also do our open-market operation.
</blockquote>
The open-market operation entails the use of instruments such as treasury bills of 90 days and 180 days where businesses with Zimbabwe dollars buy the bills.
Companies and individuals with local currency can also buy gold coins, which are used as a store of value and can be sold back to the Government after 180 days.

Pindula News

Govt Sets Up Liquidity Management Committee

Chief Nhema of Zaka, born Rangarirai Bwawanda, has reportedly barred ZANU PF District Coordinating Committee (DCC) chairperson Clemence Chiduwa from several wards that fall under his area of jurisdiction.
Chiduwa, who is the Deputy Minister of Finance and Economic Development, is not allowed to be in wards 20, 21, 26 and 31 that fall under his constituency and also under Chief Nhema’s area.
This comes after the two allegedly clashed over ZANU PF’s Central Committee nominees in Zaka.
<a href="https://tellzim.com/i-dont-want-to-see-you-in-my-area-chief-bans-minister/">TellZim News</a> reported sources as saying Chiduwa backs Nyasha Gavaza whilst Nhema supports Davis Marapira who recently transferred from Masvingo to Zaka district.
Marapira is the sitting MP for Masvingo North but is said to be eyeing Zaka Central and is also the Deputy Minister of Agriculture.
The traditional leader has reportedly ordered all party chairpersons in the aforementioned wards not to attend any meeting organized by Chiduwa or else they will face serious consequences.
However, Chief Nhema told the publication that he had not barred Chiduwa from his area adding that it was Chiduwa who was instructing the party chairpersons not to go to him. He said:
<blockquote>
If anyone is saying I have banned Chiduwa from my area, he or she is lying. I have never instructed anyone from my area not to attend his programmes, it’s actually he who instructed the chairpersons from visiting me their Chief.
</blockquote>
He said Chiduwa was the best person to explain why he was banning chairpersons from visiting him (Chief Nhema). Added the chief:
<blockquote>
I don’t fear him and if there is anything I simply tell him man to man, he is my MP and I am a Chief with an area within his constituency so we have to work together for development.
I have not reached a point of banning him in my area as I did to Chakona (former Zaka Central MP Paradzai Chakona) at some point and if need be I can simply tell him that. I have talked to his constituency coordinator about the matter.
</blockquote>
Chiduwa told TellZim News that he was not banned by the chief but the two had some issues which they deliberated and resolved. He said:
We had some disagreements over some issues but I think they have been resolved. I cannot say I was banned by Chief Nhema because if he does that, it would affect development.

Chief "Bans" Minister From His Area Of Jurisdiction

The deputy minister of Finance and Economic Development, Clemence Chiduwa says US$40 billion is needed to fix Zimbabwe’s infrastructure.
Chiduwa made the remarks while addressing journalists in Harare after meeting Africa50 chief operating officer Tshepidi Moremong in Harare.
He said the US$40 billion will maintain and develop new infrastructure, <a href="https://www.newsday.co.zw/local-news/article/200001194/us40-billion-needed-for-infrastructure-development">NewsDay</a> reported. 
Africa 50 is a Pan African infrastructure Investment platform, which the government engaged to assist with funding the country’s development projects. Chiduwa said:
<blockquote>
Our funding requirements for infrastructure covering all the sectors of the economy and all the 14 priority areas is amounting to US$40 billion, but having looked at our financing options and the fiscal space that we have, we are constrained in that area.  Having consulted Africa50 and Zimbabwe as one of the shareholders to Africa50, we then discussed innovative financing options and one of them is on asset recycling. 
So, Africa50 is here for us to discuss those options. The projects that we are looking at are those that are in the ICT sector; especially the ones on fibre optics and the development of fibre is in line again with the National Development Strategy (NDS 1) where digital economy is a priority area.  We are also looking at energy development and also infrastructure development, especially on airports. 
On the part of Africa50, we are also looking at them; hand-holding us; especially with regards to the identification of projects and also how best we can identify projects that we think are bankable, viable and low hanging fruits.
</blockquote>
Zimbabwe has been struggling to develop its infrastructure, including the expansion of the Robert Mugabe international airport, Mbudzi interchange, and Harare- Beitbridge highway due to its shrinking fiscal space.
Meanwhile, government critics, including the <a href="https://www.pindula.co.zw/ZIMCODD">Zimbabwe Coalition on Debt and Development (ZIMCODD</a>), have been sceptical of the government’s borrowing, some of which are not sanctioned by the Parliament. 
Some say the government could be borrowing to enrich individuals while others are saying the debts are not sustainable.
<h2><a href="https://zero.pindula.co.zw/">Pindula News</a></h2>

Treasury Says US$40 billion Is Needed To Fix Zimbabwe’s Infrastructure

The Government has secured a US$36 million loan from the International Funds for Agriculture Development (IFAD) to boost funding for smallholder farmers.
Addressing parliamentarians recently, Finance and Economic Development deputy minister Clemence Chiduwa said the funds shall benefit poor smallholder farmers.
He said the project would be implemented in five of Zimbabwe’s 10 provinces: namely Mashonaland Central, Mashonaland East, Mashonaland West, Midlands and Matabeleland North. Said Chiduwa:
<blockquote>
The Smallholder Agriculture Cluster Project (SACP) increases agricultural production and productivity, especially by smallholder farmers which enhances food and nutrition security, income, increased opportunities for value addition and the development of agro-business value chains.
… To support the programme, the government negotiated and signed a US$35,7 million loan with IFAD on 17 May 2021 for the Smallholder Agriculture Cluster Project.
The loan will be utilised for sustainable smallholder irrigation development, climate-smart agriculture and market access, promotion of COVID-sensitive production and productivity enhancement, increasing the availability of diverse and nutritious foods for household consumption, improvement of knowledge, attitudes and practices on healthy eating habits and caregiving practices and improvement of the performance of selected nutrition-sensitive IFAD investments.
</blockquote>
<h4>More: <a href="https://www.newsday.co.zw/2021/11/govt-secures-us36m-agric-loan/">NewsDay</a></h4>

Govt Secures US$36m To Boost Smallholder Farmers

The Zaka registry offices have no printers and this has made it difficult for people in the district to access identity documents.
This was revealed by the Deputy Minister of Finance and Economic Development and Zaka East Member of Parliament Clemence Chiduwa.
Chiduwa who is ZANU PF Zaka District Coordinating Committee (DCC) chairperson was speaking at the Provincial Coordinating Committee (PCC) meeting at Great Zimbabwe University’s Julius Nyerere School of Social Sciences over the weekend.
He said they have discovered that more than 40 per cent of the people in their party cells had no identity documents and could not register to vote. Said Chiduwa:
<blockquote>We have finished cell structuring in the Zaka district but we have discovered that a number of people in the cells have no IDs and cannot register to vote.
So we approached the registry offices in Zaka with the intention of making sure that they get IDs.
We were however told that the district office has no printers for the past three months and people are not getting IDs.</blockquote>
When contacted for comment by TellZim, Zaka District Registrar Cuthbert Mataruse said he was not allowed to comment to the media.
However, other sources close to the matter told TellZim that the computers malfunctioned when the registry offices opened after the long COVID-19 induced lockdown saying they were taken to Harare but were condemned and need to be replaced.
The sources indicated that the machines are too old, which resulted in them malfunctioning when registry offices reopened after lockdown last year.
<h4>More: <a href="http://www.tellzim.com/2021/06/no-printers-at-zaka-registry.html">TellZim</a></h4>

No Printers At Zaka Registry

The government says it will not control the prices of commodities which have risen sharply in the past week following the promulgation of Statutory Instrument (SI) 127 of 2021.
SI 127 of 2021 seeks to regulate foreign currency exchanges by banning business operators from charging above the official exchange rate.
The measures also empower authorities to punish those that refuse to take the Zimbabwe dollar for local transactions.
Responding to legislators who had raised concerns over continued price hikes of basic commodities in the National Assembly on Thursday, Finance deputy minister Clemence Chiduwa said the government would allow the market to regulate itself. He said:
<blockquote>I would like to assure the House that we are not going to control prices. We will allow businesses to thrive and come up with their own pricing models but what is very critical in economics is effective demand.
You can increase prices the way you want, but what is critical is effective demand.
When you have increased your prices, are people going to buy? You can only buy where there is no choice but look at how the Zimbabwean economy is dichotomised between the informal and formal sector.
Price controls are not going to assist us as a country, they will take us back but as I have mentioned, there is the issue of effective demand and then the issue of import parity.</blockquote>
Chidawu also defended the forex use measures saying they protect consumers from abuse by unscrupulous businesses.
He said price stability will soon be achieved and the prices will actually start to go down within the next few weeks.
<h4>More: <a href="https://www.newsday.co.zw/2021/06/no-price-controls-govt/" rel="noopener" target="_blank">NewsDay</a></h4>

Govt Won't Resort To Price Controls - Dep. Minister

Zimbabwe has not re-dollarised but is simply using dual currencies, the Deputy Minister of Finance and Economic Development Clemence Chiduwa has said.
Chiduwa made the remarks in Parliament while responding to questions from legislators during a question and answer session. He said:
<blockquote>What I would want to state is that we have not dollarized, what we have is the dual usage of the USD and the RTGS and the conversion of the USD should be done at the ruling auction rate.
Chiduwa added that local authorities are free to charge for services in US dollars but should not force residents to pay rates exclusively in foreign currency. He said:</blockquote>
In cases where local authorities would want to charge in USD, it should not be forced but it is allowed. What I would want to state is we have not dollarised.
<blockquote>What we have is the dual usage of the United States dollar and the RTGS and the conversion of the United States dollar should be done at the ruling auctioning rate.</blockquote>
This comes as small shops and individuals are increasingly demanding the US dollar as the currency of choice.
<h4>More: <a href="https://openparly.com/we-have-not-dollarised-govt/">Open Parly</a></h4>

Councils Should Not Force Ratepayers To Pay In Forex - Chiduwa

Finance and Economic Development Deputy Minister Clemence Chiduwa has acknowledged the spike in inflation and unbridled price increases, saying this is being driven by the exchange rate.
Chiduwa said the exchange rate can be stabilised through increased exports, while at the same time, the government’s policy interventions would increase confidence in the Zimbabwe dollar. He said:
<blockquote>The inflation rate at the moment is the exchange rate driven. So, what is needed on our part is to stabilise the exchange rate.
In terms of the stability of the exchange rate, the medium-to-long term is for us to produce. The stability of the exchange rate is on us being in a position to export.
But in the short-term, the movement in the exchange rate at the moment is due to a number of factors. One such factor is speculation and operations of the parallel market.
This is where we are now saying we want to bring some stability and formality in the trading of currency.</blockquote>
A survey carried out by the Chronicle on Monday revealed that some shop workers in Bulawayo were busy removing old shelf prices replacing them with new pegs, a development reminiscent of the 2008 hyperinflationary period.
Meanwhile, as of yesterday, the US dollar was trading at $42 from $40 last week on electronic transfers on the parallel market while it was at $39 on the official market.
<h4>More: <a href="https://www.chronicle.co.zw/price-hikes-dont-panic-goverment-says-year-on-year-inflation-hits-540/" rel="noopener noreferrer" target="_blank">Chronicle</a></h4>

Govt Working On Stabilising The Exchange Rate - Deputy Finance Minister

Deputy Finance Minister Clemence Chiduwa said that the government expects to see prices coming down in 2020 given the slowing down of month-on-month inflation during the last quarter of 2019.
Chiduwa made the remarks during an interview last week with Daily News reporters Blessings Mashaya and Pauline Hurungudo. He said:
<blockquote>The possibility of prices coming down in 2020 is very high on account of recent trends in inflation dynamics, where month-on-month inflation has been trending downwards from 38,75 per cent in October, 17,46 per cent in November and 16,55 per cent in December 2019.
The high inflationary environment of 2019 was mainly due to adjustments in relative prices, in line with exchange rate movements, following measures taken on currency reforms.</blockquote>
Chiduwa added that there will be minimal adjustments this year as most prices have already adjusted, for instance, on electricity, education and other utilities.
The government is committed to continuing implementing policies that contain money supply growth under the Monetary Targeting Framework, said Chiduwa.
Chiduwa also revealed that $10 and $20 and $50 notes will be released soon as most of the logistics have been put in place.
<h4>More: <a href="https://www.dailynews.co.zw/articles/2020/02/02/possibility-of-prices-coming-down-in-2020-very-high" rel="noopener noreferrer" target="_blank">Daily News</a></h4>

Govt Anticipates A Fall In Prices Of Goods & Services In 2020

The government has changed its prior position regarding foreign currency rules following a cabinet resolution yesterday that companies and individuals with free funds are free to import all kinds of foodstuffs without being asked their source of funds.
Speaking during a post-cabinet media briefing on Tuesday, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said questions will only be asked when there are reasonable grounds to suspect that a crime has been committed. She said:
<blockquote>…. in view of undue pronouncements through the media,
Cabinet reiterated its position on the relaxation of importation procedures for grain and foodstuffs. The nation is therefore informed that all companies and individuals with free funds are free to import not just maize, maize meal and flour, but the entire range of foodstuffs, without import permits.
As such, therefore, no question shall be asked regarding the source of the funds so used, except when there are reasonable grounds to suspect that a crime has been committed.</blockquote>
Last week, Finance Deputy Minister, Clemence Chiduwa, said that the government will force importers to declare sources of foreign currency and those who fail to prove they obtained the money from banks will forfeit their goods to the state
<h4>More: <a href="https://www.herald.co.zw/42nd-cabinet-meeting-decisions-matrix/" rel="noopener noreferrer" target="_blank">The Herald</a></h4>

Govt Backtracks On Rules Regarding Importers' Source Of Funds

Deputy Finance and Economic Development Minister Clemence Chiduwa on Friday announced that the government was crafting a new policy that will make it compulsory for importers to declare their source of foreign currency.
Chiduwa, who was in the company of Minister <a href="https://www.pindula.co.zw/Mthuli_Ncube" rel="noopener noreferrer" target="_blank">Mthuli Ncube</a> and permanent secretary <a href="https://www.pindula.co.zw/George_Guvamatanga" rel="noopener noreferrer" target="_blank">George Guvamatanga</a>, said that those who fail to declare their source of foreign currency will forfeit their goods to the State.
Watch the video below [ZTN]:
<div class="wp-video" style="width: 640px;">
<video class="wp-video-shortcode" controls="controls" height="360" id="video-139987-1" preload="metadata" width="640"><source src="https://t792ae.c2.acecdn.net/wp-content/uploads/2019/11/WhatsApp-Video-2019-11-24-at-06.44.08.mp4?_=1" type="video/mp4"/><a href="https://t792ae.c2.acecdn.net/wp-content/uploads/2019/11/WhatsApp-Video-2019-11-24-at-06.44.08.mp4">https://t792ae.c2.acecdn.net/wp-content/uploads/2019/11/WhatsApp-Video-2019-11-24-at-06.44.08.mp4</a></video></div>

Watch: Deputy Finance Minister Announces New Stringent Forex Rules

Zimbabwe Cross Border Traders Association president <a href="https://www.pindula.co.zw/Killer_Zivhu" rel="noopener noreferrer" target="_blank">Killer Zivhu</a> said that the government should have implemented the policy requiring every importer to declare their source of foreign currency when it reintroduced the Zimbabwe Dollar in February.
Zivhu made the remarks following Deputy Finance Minister Clemence Chiduwa’s declaration on Friday that the government is now crafting the policy. Said Zivhu:
<blockquote>At that time [in February] it would have worked because there was some confidence in the banking sector which has somewhat waned at the moment.
So, what the Government should do is to direct the RBZ to restore confidence in the banking sector first.</blockquote>
On Friday Chiduwa, who was in the company of Minister <a href="https://www.pindula.co.zw/Mthuli_Ncube" rel="noopener noreferrer" target="_blank">Mthuli Ncube</a> and permanent secretary <a href="https://www.pindula.co.zw/George_Guvamatanga" rel="noopener noreferrer" target="_blank">George Guvamatanga</a>, told reporters that importers will soon be required to declare the legal source of their foreign currency under legislation being drafted.
He said this is meant to push foreign currency trading into the legal interbank market and away from the black market.
<h4>More: <a href="https://www.herald.co.zw/tough-forex-controls-loom/" rel="noopener noreferrer" target="_blank">The Herald</a></h4>

'It Won't Work', Vendors Speak On Tough Forex Control Measures

Finance and Economic Development Deputy Minister Clemence Chiduwa said that importers will soon be required to declare the legal source of their foreign currency under a new policy that is being crafted.
However, <a href="https://www.pindula.co.zw/Confederation_of_Zimbabwe_Retailers" rel="noopener noreferrer" target="_blank">Confederation of Zimbabwe Retailers Association</a> president Denford Mutashu asserted that the policy will have a negative impact on business. He said:
<blockquote>The first problem with such a regulation is that most Zimbabweans have of late not been conducting their business through the formal banking channels, so if they were to be asked to indicate the source of foreign currency you will find that most will struggle.
… it will limit legal imports as most traders will prefer to pay a kick-back here or there while some will stop trading and keep their foreign currency in their homes rather than being asked to justify its source.</blockquote>
Chiduwa made the remarks in a post-Budget media interface he addressed on Friday in the company of Minister <a href="https://www.pindula.co.zw/Mthuli_Ncube" rel="noopener noreferrer" target="_blank">Mthuli Ncube</a> and permanent secretary <a href="https://www.pindula.co.zw/George_Guvamatanga" rel="noopener noreferrer" target="_blank">George Guvamatanga</a>.
The policy is aimed at killing the foreign currency black market, with illegal foreign currency deals being conducted openly in all major cities and towns.
<h4>More: <a href="https://www.herald.co.zw/tough-forex-controls-loom/" rel="noopener noreferrer" target="_blank">The Herald</a></h4>

'New Forex Measures Will Harm Business'

The government will now seize imported goods at entry points if the owners fail to declare their source of foreign currency.
The measure has been adopted in a move to combat the parallel market activities, a government official has said.
Clemence Chiduwa, Finance and Economic Development Deputy Minister, said that the government was now working on mechanisms to implement the policy.
He said that the policy would encourage people to use their <a href="https://www.pindula.co.zw/Nostro_Account" rel="noopener noreferrer" target="_blank">Nostro accounts</a> in commercial banks.
<h4>More: <a href="https://www.herald.co.zw/just-in-where-did-you-get-the-forex/" rel="noopener noreferrer" target="_blank">The Herald</a></h4>

Importers To Lose Goods If They Fail To Declare Source Of Forex

ZANU PF candidate in the Zaka East Constituency by-election, Clemence Chiduwa, has said that he is going to win since the ruling party has a track record of winning.
Speaking to ZBC News, Chiduwa said:
<blockquote>It is well known that ZANU PF wins all the time. We know we will win, we just await the margins.</blockquote>
ZBC also spoke to MDC-A candidate, Derick Gudzameso, who said that he was also confident of winning. Hw added that his party has lined up projects including dip tanks and others aimed at improving water provision.
The NCA led by law expert, Professor Lovemore Madhuku, fielded Clemence Chavarika to represent them whilst Lazarus Mubango is representing Free Zim Congress.
The results are expected in the early hours of Sunday morning.
Chiduwa’s remarks come when the opposition MDC has alleged the ruling ZANU PF has been using state resources to influence voters in the previously held elections, particularly <a href="https://news.pindula.co.zw/2019/07/13/corruption-as-zanu-pf-uses-state-medicines-firm-to-supply-constituency-ahead-of-by-election/">Lupane and Glenview South by-elections.</a>
The <a href="https://news.pindula.co.zw/2019/09/21/zacc-investigates-by-elections-vote-buying-allegations/">Zimbabwe Anti Corruption Commission is already seized with the matter.</a>
On the launch of MDC RELOAD this year, MDC leader, Nelson Chamisa vowed <a href="https://news.pindula.co.zw/2019/07/11/chamisa-mocked-for-there-will-be-no-elections-under-current-zec-remarks/">not to partake in any election presided over by the current Zimbabwe Electoral Commission</a> team which he said was biased towards ZANU PF.
The MDC is still adamant, a year later, that they won the 2018 elections.
More: <a href="http://www.zbc.co.zw/zaka-east-by-elections-held-this-saturday/">ZBC News</a>

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